The Bitcoin network celebrated a historic milestone on Christmas Day, with its computing power, commonly referred to as the mining hash rate, reaching an all-time high.
On December 25, according to data from Blockchain.com, Bitcoin’s hash rate surged to an impressive 544 exahashes per second (EH/s).
This remarkable achievement was corroborated by Bitinfocharts, which recorded a consistent high hash rate throughout the weekend.
This surge in hash rate comes in the wake of an exceptional year for Bitcoin, during which network hash rates more than doubled, skyrocketing by an astounding 130% since the start of the year.
Remarkably, this increase in hash rate was closely mirrored by the asset’s price, which has surged by over 150% since January 1, 2023.
Will Clemente, co-founder of Reflexivity Research, reflected on this growth, highlighting the resilience of the Bitcoin network.
He noted that the China mining ban of summer 2021, which was perceived as a potential threat to the network’s security, has proven to be insignificant, stating, “Imagine fading the most secure decentralized open-source monetary network on the planet, couldn’t be me.”
However, this surge in hash rate isn’t all good news, especially for Bitcoin miners.
While high hash rates can theoretically support favorable price models like implied hash-adjusted price, they also mean that miners have to put in more effort to secure the next block.
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This additional effort comes at a time when profitability is under pressure.
Hash price, a key indicator of mining profitability, has been on the decline in the past week, primarily due to the cooling off of the BRC-20 ordinal inscription craze.
Currently, hash price stands at $0.09 per terahashes per second per day, as reported by HashrateIndex.
This marks a significant drop from its peak of $0.136/TH/s/day on December 17, 2023, reflecting a 34% decrease in profitability.
One of the reasons behind this fluctuation in hash price is the sporadic spikes in demand, leading to higher transaction fees, especially during recent inscription frenzies.
Glassnode analyst “Checkmatey” noted that Bitcoin mempools have been under sustained elevated fee pressure since February, with no complete clearing for almost a year.
The Bitcoin network’s ability to consistently break records in hash rate, despite challenges and fluctuations in profitability, underscores its resilience and strength as a decentralized and secure digital currency.
Network hash rates first surpassed the 500 EH/s milestone in late November, demonstrating the ongoing growth and adoption of Bitcoin.
Reports have emerged on social media suggesting that creditors of the now-defunct Bitcoin exchange, Mt. Gox, have begun receiving fiat repayments for their long-trapped Bitcoin holdings.
These funds had been inaccessible since February 2014.
Reddit posts on the r/mtgoxinsolvency page indicate that Mt. Gox has been sending repayments denominated in Japanese Yen to users via PayPal, marking a remarkable development nearly a decade after the funds became locked on the exchange on February 24, 2014.
It should be noted that these reports are yet to be officially confirmed.
Reddit user Free-end254 excitedly claimed, “I just got paid,” sharing a screenshot of the email containing a PayPal payment receipt.
Another user expressed similar surprise, having initially suspected a phishing scam before finding a genuine payment in their PayPal account.
However, one user disclosed that only a portion of their 0.125 Bitcoin claim had been repaid, receiving 30,283 yen, equivalent to $200 at the current exchange rate, and still awaiting an approximate payment of $748.
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Repayments to creditors are expected to be made in multiple installments, including the base repayment, early lump-sum repayment, and intermediate repayment.
The first instances of these repayments became public on December 21, when a pseudonymous Japanese user announced that they had received their Mt. Gox claims via a bank transfer, credited in Japanese Yen.
This development follows an email from Nobuaki Kobayashi, the trustee overseeing Mt. Gox’s estate, sent to rehabilitation creditors on November 21, notifying them of the commencement of repayments.
The email mentioned that the trustee intends to initiate cash repayments in 2023 and anticipates continuing the process into 2024.
However, no specific timeline for repayments to individual rehabilitation creditors was provided.
Notably, on September 21, the Mt. Gox Trustee extended the repayment deadline from October 31, 2023, to the same date in 2024.
Nevertheless, the trustee indicated that some repayments could be made “as early as the end of this year” for rehabilitation creditors who had already furnished the necessary information.
Cointelegraph reached out to Mt. Gox for comment but had not received an immediate response at the time of reporting.
The unfolding situation is being closely watched by creditors who have been awaiting the return of their long-frozen assets for years.
United States-approved spot Bitcoin exchange-traded funds (ETFs) are poised to make a seismic impact on the crypto-related ETF market, potentially eclipsing its current valuation of $50.3 billion in assets under management, as per recent findings from BitMEX research.
As the anticipation for SEC approval of spot Bitcoin ETFs builds, a comprehensive list of existing crypto-related exchange-traded products has been compiled.
This list encompasses both spot and futures funds, predominantly tracking the performance of Bitcoin and Ethereum.
Leading the pack is Grayscale’s Bitcoin Trust, which is actively pursuing conversion into a spot ETF.
Market experts are optimistic about the prospects of a spot Bitcoin ETF, with expectations that its approval, possibly as early as January 10th, could effectively double the capital invested in crypto ETPs.
Bitwise, a crypto investment fund, projects that spot Bitcoin ETFs have the potential to amass a staggering $72 billion in assets under management within the next five years, surpassing the current market size.
However, global fund manager Van Eck offers a more conservative estimate, predicting around $2.4 billion in inflows into spot Bitcoin products during the first quarter of 2024.
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Despite never gaining approval in the U.S., spot Bitcoin ETFs have already found a home in countries like Canada, Australia, and Germany, allowing investors to acquire shares in these ETFs.
The enthusiasm surrounding spot Bitcoin ETFs reflects a broader trend of institutional investment in crypto products over recent months.
A report from ETF research firm ETFGI, published on December 21st, disclosed that crypto ETFs worldwide had accumulated year-to-date net inflows of $1.6 billion, with a significant portion, $1.31 billion, flowing in during November alone.
This figure represents almost double the $750 million net inflows observed in crypto ETPs throughout 2022.
Out of the 150 crypto funds available, the top 20 ETFs have attracted the most substantial investments, totaling $1.3 billion throughout 2023.
Notably, the ProShares Bitcoin Strategy ETF (BITO), launched during a crypto bull market in October 2021, stands out with the largest individual inflows, securing an additional $278.7 million in 2023.
In conclusion, the imminent approval of spot Bitcoin ETFs in the United States has the potential to reshape the landscape of crypto-related ETFs, potentially dwarfing the market’s existing valuation and solidifying the growing trend of institutional interest in cryptocurrency investments.
According to the persistent trader known as Il Capo of Crypto, Bitcoin, Ether, and other cryptocurrencies may be headed for “new lows,” despite their remarkable gains this year.
Il Capo, who has maintained a $12,000 BTC price target throughout the year, recently declared the end of the current bull market in a December 22nd post on X (formerly Twitter).
While Bitcoin and Ether have surged by 163% and 92%, respectively, year-to-date, as reported by Cointelegraph Markets Pro and TradingView, Il Capo remains skeptical, predicting a looming collapse.
They suggest that BTC/USD is likely “forming a local top here at 40k–45k” and that Ethereum (ETH) could potentially drop to the 2500s, with some altcoins experiencing their final pumps before a reversal to new lows in the coming weeks.
Il Capo’s bearish outlook coincides with significant developments in Bitcoin’s history, notably the impending approval of the first Bitcoin spot price exchange-traded fund (ETF) in the United States.
Many consider this event a pivotal moment that could open the doors for institutional capital to flow into Bitcoin.
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With a popular BTC price target of $48,000 associated with this decision expected by January 10, 2023, Il Capo’s skepticism seems to diverge from the overall bullish sentiment prevailing in the market.
In November, they already hinted at the “beginning of the end” and noted that prices were rising higher than anticipated, accompanied by extremely bullish sentiment.
Others also acknowledge the possibility of a significant correction, even in the event of a positive ETF confirmation, viewing it as a potentially healthy catalyst for the bull market.
Trading firm QCP Capital, in its final market update for 2023, speculated that a “sell the news” scenario could unfold in the second week of January, leading to topside resistance for BTC in the 45-48.5k region and a possible retracement to 36k levels before the uptrend resumes.
Despite short-term uncertainties, there is confidence that the upward trend in cryptocurrencies will eventually continue, especially as the market positions itself for a strong rally into the Bitcoin halving, albeit possibly after a few weeks of market adjustment.
As Il Capo of Crypto stands firm in their bearish perspective, the crypto community awaits the unfolding of these critical events to determine the market’s future direction.
Bitcoin remained within a tight trading range leading up to the weekly close on December 24, with a trader anticipating a potential breakout in the cryptocurrency’s price.
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD exhibited predominantly sideways movement throughout the weekend, a trend that had started towards the end of the Wall Street trading week.
This price stability came as Bitcoin reacted to the final United States macroeconomic data of the year, resisting volatility.
Bitcoin’s value hovered around $43,500, prompting a well-known trader and analyst named Credible Crypto to express optimism about an impending upward movement.
According to Credible Crypto, the current flat trading phase signifies an accumulation period, making it an ideal time for investors.
He noted, “It really does not get much better than this,” and emphasized the possibility of a push towards $50,000.
Credible Crypto also highlighted several factors contributing to this bullish sentiment, including the tight accumulation range, decreasing aggregate open interest (which is considered healthy), active buying on Coinbase, and nearly reset funding rates.
All of these factors suggested that Bitcoin was well-positioned for its next upward move.
However, order book data for the BTC/USDT pair on the leading global exchange, Binance, indicated a key resistance level at just below $45,000, with approximately $92 million in ask liquidity.
This resistance level would need to be overcome for Bitcoin to make significant gains.
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On the other hand, Keith Alan, co-founder of Material Indicators, offered a contrasting perspective.
He suggested that holiday trading activity might not provide enough momentum for bulls to break through the resistance.
Alan pointed out that liquidity might shift, potentially making it easier for Bitcoin to move higher.
As the year-end approached, Bitcoin’s performance in December appeared fairly average, with month-to-date gains of approximately 16% as of December 23.
However, the quarterly performance was exceptional, at 62%, marking Bitcoin’s best quarterly performance since 2020.
Market analysts and experts continued to focus on Bitcoin’s price leading up to a significant event – the expected approval of the first U.S. Bitcoin spot price exchange-traded fund (ETF), scheduled for January 10, 2024.
Some speculate that this event could trigger a significant market reversal, potentially impacting Bitcoin’s price trajectory.
In the meantime, traders and investors remained watchful for any signs of movement in the cryptocurrency markets.
The ongoing legal dispute concerning the identity of Satoshi Nakamoto, the alleged creator of Bitcoin, and the associated rights to the cryptocurrency has recently witnessed a significant development.
A British judge has rescheduled the trial pitting Craig Wright against Bitcoin Core developers for February 5th.
In 2016, Craig Wright made headlines by claiming to be Satoshi Nakamoto and subsequently initiated legal action against 13 Bitcoin Core developers and several companies, including Blockstream, Coinbase, and Block.
His lawsuit alleged copyright violations regarding Bitcoin’s white paper, file format, and blockchain database.
Represented by the non-profit Cryptocurrency Open Patent Alliance (COPA), the defendants have vehemently denied these claims.
During a pre-trial review on December 15th, Justice Edward James Mellor granted Craig Wright permission to submit an additional 97 documents supporting his assertion.
These documents had purportedly been discovered on two USB drives found in a drawer at his residence in September.
Notably, these files included LaTex documents, the open-source system used for drafting the Bitcoin white paper.
However, Bitcoin developers raised concerns of fabricated evidence, metadata manipulation, and procedural delays orchestrated by Wright.
They argued that the newly revealed documents were only disclosed after they had submitted 50 pieces of evidence, which they believed demonstrated the falsification of Wright’s previous materials.
Justice Mellor, in response to these concerns, ordered Wright to make an additional payment of 800,000 pounds (approximately $1 million) by January 5th, covering the legal costs of the developers in the event of Wright’s defeat.
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Wright had already deposited 100,000 pounds ($127,000) as a security payment.
Moreover, the judge mandated that Wright pay 65,000 pounds ($82,000) to cover COPA’s expenses associated with expert evidence regarding his Autism Spectrum Disorder (ASD).
Wright had claimed disability due to ASD and provided a report detailing adjustments required during the trial, including a list of cross-examination questions.
Cross-examination is a process where the opposing party poses questions to scrutinize or challenge a witness’s testimony.
Wright’s request for special accommodations due to his ASD was met with opposition from the developers, who enlisted an expert to support their objections.
Consequently, Wright will only be permitted to access the LiveNote Screen and write down questions on paper during the trial.
The heart of this dispute lies in the nature of Bitcoin’s open-source code, which is freely available under the Massachusetts Institute of Technology license, allowing for its use in various applications, including proprietary ones.
Wright’s argument contends that Bitcoin Core developers form a “Bitcoin Partnership” allegedly controlling Bitcoin, a contention hotly contested by those on the opposing side of the legal battle.
On December 21, amidst Bitcoin’s struggle to breach the $45,000 resistance level, large-cap altcoins like Solana and Avalanche emerged as frontrunners in the crypto market.
Bitcoin had faced resistance at $45,000 since its initial surge on December 5, resulting in a slight pullback in its market dominance from 53.95% to 53.17%.
Meanwhile, altcoins witnessed a surge in market dominance (TOTAL2).
Technical analysts often interpret a drop in Bitcoin dominance combined with BTC’s sideways trading as a potential indicator for an altcoin breakout.
Furthermore, market sentiment is influenced by the interplay between the U.S. Dollar Index (DXY) and Bitcoin’s price.
Presently, the DXY has declined by 1.56% in the month, while Bitcoin has gained 16.18% in the same period.
Many traders attribute the DXY’s reversal to comments from Federal Reserve Chair Jerome Powell and FOMC minutes hinting at possible interest rate cuts in 2024.
With the expectation of a spot Bitcoin ETF approval in Q1 2024 and the belief that the Fed’s interest rate hikes have ended, the crypto market sentiment leans toward euphoria.
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Solana and Avalanche have notably surged in price during this period, with SOL becoming the fourth-largest cryptocurrency by market capitalization, surpassing XRP. SOL’s rise can be attributed to several factors, including improvements in the Solana network’s user experience, particularly for token and NFT launches.
Solana’s focus on mobile accessibility and low transaction costs has attracted users prioritizing ease of use over decentralization, making it a strong competitor against Ethereum.
SOL’s recent rally is further fueled by the excitement surrounding airdrops, the listing of the SPL token JITO on major exchanges, and the subsequent success it achieved, with a market capitalization exceeding $300 million shortly after launch.
Additionally, SOL’s growth is supported by the increasing adoption of decentralized applications (DApps) on the Solana network.
Over three weeks, the total value locked (TVL) in Solana surged from $654 million to $1.28 billion, marking a remarkable 96% increase.
Similar trends can be observed in the Avalanche ecosystem, where an influx of DApp users, various DeFi protocol incentives, and persistent rumors of airdrops have led to increased inflows, daily active users, and an upward trajectory in the price of AVAX.
These developments highlight the growing prominence of Solana and Avalanche as they make strides in the competitive cryptocurrency market.
In the midst of a burgeoning crypto marketing showdown, the spotlight has recently fallen on Bitcoin exchange-traded fund (ETF) issuers who have unleashed a flurry of crypto advertisements, marking a total of three within a mere two days.
The first salvo was fired by Bitwise on December 18th when they unveiled their Bitcoin ETF advertisement.
Featuring none other than the renowned actor Jonathan Goldsmith, famous for his portrayal of the “Most Interesting Man in the World” in a Dos Equis beer campaign, this ad sought to capture the audience’s attention.
Not to be outdone, Hashdex joined the fray on December 20th with their own crypto advertisement.
Their offering featured a dumper truck emblazoned with the bold captions, “Stocks aren’t crypto, fixed income isn’t crypto, precious metals? nope, not crypto either,” before highlighting their own firm.
Bitwise, determined to maintain the momentum, swiftly responded on the same day with another short ad featuring Goldsmith.
In character, he humorously remarked, “Thought you would like to know, Satoshi sends his regards,” while continuing to promote Bitcoin.
Despite the spirited competition, the prevailing sentiment on social media was that Bitwise’s advertising campaign had emerged victorious.
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This marketing blitz by asset managers is particularly noteworthy as it reflects a high level of confidence in a financial product still awaiting regulatory approval.
Currently, there are 13 pending spot Bitcoin ETFs, with analysts estimating a 90% likelihood of approval by the SEC by January 10th.
Samson Mow, CEO of JAN3 and a Bitcoin pioneer, weighed in on the significance of these marketing campaigns for Bitcoin ETFs.
Mow emphasized that companies vying for a spot in the Bitcoin ETF space are engaged in fierce competition for investors, inflows, and assets under management, with branding as their primary weapon.
He predicted, “This battle for the Bitcoin orange glow is going to heat up like you can’t imagine.”
Mow hinted at future campaigns from industry giants like BlackRock and Fidelity, envisioning endorsements from figures like Novak Djokovic and Michael Saylor, which would further intensify the marketing frenzy surrounding Bitcoin ETFs.
On December 21st, Bitcoin made headlines as it surged to around $44,000 just before the Wall Street opening bell. Experts had been anticipating a correction in the Bitcoin price, and this move seemed to confirm their expectations.
Market data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin had broken out of its one-week trading range.
A day earlier, it reached a high of $44,300 before experiencing a reversal. Despite this correction, Bitcoin had still managed to maintain a 6% increase for the week.
Stockmoney Lizards, a trading team, noted in their latest market update on social media platform X (formerly Twitter) that although a correction seemed necessary, Bitcoin’s chart remained strong across all timeframes.
They also observed that Bitcoin appeared to be forming an ascending triangle with a retest of the upper resistance line around $44,000.
Like many in the crypto community, Stockmoney Lizards were closely watching the upcoming decision regarding the United States’ first Bitcoin spot price exchange-traded fund (ETF), scheduled for January 10th.
They believed that Bitcoin could continue to rise until the ETF decision was announced, setting a near-term target of $48,000.
READ MORE: Spot Bitcoin ETF Approval: A Potential Game-Changer on Wall Street, Says Michael Saylor
However, they also cautioned that even if the announcement was positive, it might trigger a “buy the rumor, sell the news” event.
This sentiment was echoed by trading firm QCP Capital, which anticipated a “sell the news” scenario in the second week of January, regardless of the ETF outcome.
QCP Capital expected Bitcoin to face resistance in the $45,000 to $48,500 range and potentially retrace to levels around $36,000 before resuming its uptrend.
While Stockmoney Lizards considered this scenario less likely, they pointed out that the market was in a heated state and a correction could be beneficial.
They suggested that if Bitcoin dropped below $40,000, it might lead to the liquidation of leveraged long positions and a retracement towards $38,000.
Factors such as the need for a correction after a rally, year-end sales (tax loss selling), and reduced trading activity during the holidays supported this argument.
Despite these various scenarios, market data indicated that many traders were poorly positioned for Bitcoin’s recent push above $44,000.
On December 20th, over $100 million in crypto short positions were liquidated, including $38.5 million in Bitcoin short positions, according to statistics from CoinGlass.
Brazil has displaced Nigeria as the second-ranked nation in terms of Bitcoin interest, according to data from Google Trends.
El Salvador has maintained its position as the leader in this ranking.
The shift suggests a changing landscape in cryptocurrency preferences as Bitcoin’s popularity surges in Brazil, Latin America’s most populous country.
El Salvador’s continued dominance in Bitcoin interest can be attributed to its unwavering commitment to the cryptocurrency.
On December 7th, the El Salvadoran government, in collaboration with stablecoin issuer Tether, introduced the Freedom Visa program.
This initiative allows for citizenship by donation, granting residency and a pathway to citizenship to individuals contributing a $1 million donation in either Bitcoin (BTC) or Tether (USDT) to the country.
In Brazil, the country’s largest private bank, Itau Unibanco, entered the cryptocurrency arena by offering cryptocurrency services, starting with Bitcoin and Ether trading.
This move came following a series of regulatory changes in the Latin American cryptocurrency landscape.
In contrast, Nigeria has seen a shift in its cryptocurrency landscape, with a growing preference for stablecoins, particularly the USDT, over Bitcoin.
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This preference is driven by the stability of stablecoins, as they are pegged to the widely accepted U.S. dollar, offering a hedge against inflation and the devaluation of the Nigerian naira.
Stablecoins are not only chosen for their stability but also for their profitability.
According to the 2023 Geography of Cryptocurrency Report by Chainalysis, peer-to-peer trading volumes of the naira against USDT have witnessed a significant surge in 2023, more than doubling the initial rate.
Despite facing challenges, Nigeria’s cryptocurrency market continues to be a vital transactional tool in the sub-Saharan region.
However, it is gradually losing its prominence to more crypto-friendly countries such as the United Kingdom, the United Arab Emirates, and Brazil.
Nigeria remains a leader in cryptocurrency adoption in Africa and globally, experiencing an impressive 9% annual growth rate, as per a Chainalysis report.
Despite recent declines in Bitcoin interest, Nigeria remains among the top three countries with consistent growth since 2021.
As the cryptocurrency landscape continues to evolve, these rankings may see further shifts in the coming years, reflecting changing preferences and regulatory dynamics in different regions.